Commodities | Nov 07 2013
Gold looks to be suffering, as we mentioned last week. The move have not been aggressive, regardless of ongoing stimulus. This is a little perplexing and we can only suggest that traders are sensing that the US economy is not recovering as fast as people thought and in fact that it is slowing or drifting into a deflationary scenario. As such gold has been under pressure. The data out over the next few days should cement some form of direction for the metal.
We have been stopped out of our positions and have no real expectations on a direction. As such we feel the safest place to be is on the sideline.
Chart Point – Gold:
As we rejected US1350 suggest the market is trying to find a low. Trend line support at US1270 could come into play. Be guided by this level of support and or a break above US1350. Momentum indicators more softness is to come.
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